Observations on life

Would America be a better place?

Let’s say we could take the top 5% of Americans by income and replace them with people who think and act like Bernie Sanders or Elizabeth Warren.

imageIn other words, we become top-heavy in people who never held real jobs, never created anything of value for the economy, but who are concerned about people, believe most people need some government assistance to get by and see creation of wealth as unfair.

Wealth is then more evenly distributed among the populace and the elite 5% are all politicians, community organizers and academia.

Would America be a better place?

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4 replies »

  1. Sorry, Bernie and Elizabeth are already in the top 5% – as are all other Congresspersons and Senators – annual salary of $174,000 plus benefits and perquisites everyday Americans can only dream about. For comparison, based on Internal Revenue Service’s 2010-2014 database information, here are the top 1%, 5%, 10%, 25% and 50% (median) incomes:

    Top 1%: $380,354

    Top 5%: $159,619

    Top 10%: $113,799

    Top 25%: $67,280

    Top 50%: $33,048

    For comparison, the median salary of an internist in America is also $175,000 – however, it varies significantly by location.

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    • Maybe I should have just said top 1% but Old Liz makes that too. Bernie on the other hand is near the bottom in the Senate ranks of wealth.

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      • As you know, income and wealth are very different concepts – though too many Americans think those who currently have an income that places them in the top 5% or top 1% of incomes are “rich” – a wealth concept. The two concepts often meet where an individual’s major source of income is investment earnings on accumulated wealth. However, the “99%”, as well as the Bernie’s and Liz’s of the world don’t effectively distinguish between those who have incomes in the top 5% and those whose income is in the top 5% due to a lifetime of work, savings, accumulation, etc. For them, it makes no difference that your wealth reflects 40 – 50 years of gainful employment, dedicated, consistent savings, etc.

        Bernie’s accumulated wealth (or lack thereof) portends something (not sure what) about what we might expect with regard to American’s collective wealth and collective debt under a Bernie presidency – likely to include much more spending today on entitlements (buying votes), for today’s college students, today’s retirees, etc. Assuming he intends to fund those new and expanded entitlements by taxing the “rich”, the top 1% or top 5%, his proposals will run massive deficits – taking a page out of President Obama’s book where President Obama has MORE THAN doubled the nation’s debt is less than 8 years! If Bernie, Liz, and Hillary accomplish that feat, by 2025 (assuming the return of interest rates to historical averages), interest on the federal debt will exceed military spending! And, the longer the feds depress interest rates and continue to print money, we’ll start getting closer to a situation where the feds monetize the debt – Germany after WWI.

        Remember when President Obama called President Bush “irresponsible” and “unpatriotic” (July 3, 2008) for running a deficit of $160B in the second to the last full federal government fiscal year of the W presidency ending September 30, 2007!

        I heard President Obama lie again last night how he has reduced the annual deficit by 3/4ths (“… And we’ve done all this while cutting our deficits by almost three-quarters…”), where, in fact, his deficit last year, ending 9/30/15 was $439 billion, and his projected deficit for the year ending 9/30/16 is $474 billion.

        For comparison, the eight annual deficits 2001 – 2008 for President W. were $128,236 (< four months of President Clinton, more than eight months of President Bush, includes 9/11), $-157,758, $-377,585, $-412,727, $-318,346, $-248,181, $-160,701, $-458,553. For comparison, President Obama's historical and projected deficits (whitehouse.gov) are: $-1,412,688 (< four months of W., more than eight months of President Obama which exploded the deficit with the "Recovery" act), $-1,294,373, $-1,299,593, $-1,086,963, $-679,544, $-484,602, ~$-439,000 – so, President Obama's seventh year deficit is the first that is less than the last year of the W presidency, and is nearly three times W's seventh year deficit (after what President Obama claims is over six years of "recovery"). Note also that President Obama's policies are projected to trigger an increase in deficits after President Obama leaves office – averaging an estimated $500 Billion/year for the forseeable future.

        What to expect if Bernie and Liz get their way, red ink – for the federal government, for you and me, and for our children, grandchildren and generations yet unborn.

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